Successful Planning Requires "Trinity".

Tax planning has the following three characteristics: legality, planning and effectiveness.

Accurately understanding these three aspects will help us explain the current situation of tax planning and accelerate the development of tax planning in the future.

Legality is that tax planning should conform to the provisions of tax laws and other laws and regulations.

This has two meanings: first, the plan should conform to the relevant laws and regulations; two, the plan should conform to the provisions of laws and regulations in the implementation process.

Only in two ways can we call it legitimate planning.

For example, in order to make the wages of the over tax wage standard deducted before tax, an enterprise should adopt a method of increasing the number of employees and increasing the amount of pre tax deduction.

This method violates the provisions of tax law in content and means, and is tax evasion rather than planning.

Planning is planned according to the actual situation. In general, the planning performance is expected.

In economic activities, tax obligations usually lag behind.

After the occurrence of an enterprise's trading behavior, there is a tax obligation to pay all kinds of turnover tax; after income is realized or distributed, income tax is paid; property tax is only paid after the property is acquired.

This objectively provides the possibility of making plans before paying taxes.

In addition, business, investment and financial management activities are multifaceted. The tax law is also targeted. The nature of the taxpayer and the object of taxation is different, and the tax treatment is often different. This provides the taxpayer with the opportunity to choose a lower tax management plan in another aspect.

For example, an enterprise finds the annual taxable amount of 101000 yuan when the annual taxable income is calculated at the end of the year.

In order to save taxes, enterprises donated 1000 yuan to the hope project at the end of the year.

Theoretically, the donation of 1000 yuan has brought more than 5000 yuan of after tax profits to enterprises.

Since no donation is made, the taxable income of the enterprise is 101000 yuan, the tax rate of 33% is applicable, the profit after tax is 67670 yuan, the amount of taxable income is 100000 yuan after the donation is 1000 yuan, the 27% tax rate is applied, the profit after tax is 73000 yuan, and the tax revenue generated by donation is 5330 yuan.

This is a case that has been used by many tax planning books.

But in actual operation, we must see that at the end of the year, the amount of taxable income initially determined is 101000 yuan, which is the embodiment of anticipation. If it is not accurate, the taxable income of the previous year is actually more than 101000 yuan or less than 101000 yuan. After the donation of 1000 yuan, no tax benefit can be obtained.

Because of the anticipation of tax planning, we must consider two risks: risk in operation, risk in operation and risk in tax laws and regulations.

The risk in the course of operation is mainly due to inaccurate prediction of the risks brought about by the changes in the implementation of the business plan. The above example is essentially a simple business risk.

China's current tax law has a lower legal order and is more likely to change. We can not accurately estimate these changes.

The implementation of a planning scheme usually takes several years or months, so the time value of capital should be considered when evaluating the effect of income.

The time value of capital is closely related to the expected rate of return on investment.

Under other conditions, the greater the risk, the greater the expected return on investment, the smaller the value of tax savings.

Benefit is the ultimate goal of tax planning and the most important index to choose the best plan.

There are two forms of effectiveness: one is the current interest, that is, to obtain a larger net cash flow; the other is long-term interest, even if shareholder wealth maximizes or maximizes enterprise value.

Current interests are manifestations of long-term interests.

When calculating current benefits, we should consider not only the explicit and explicit costs of various schemes in operation, but also the opportunity cost and planning cost.

In the expression of current interests, some people think that corporate profits should be taken as an index.

From the perspective of long-term interests, the two are consistent, but when considering the time value of capital, it is more accurate to express it with net cash flow.

Because modern financial management has an important conclusion: the intrinsic value of assets is the present value of its future cash flow.

According to this view, the intrinsic value of an enterprise is the present value of the future cash flow of an enterprise.

Therefore, it is more appropriate to use cash flow as the goal of tax planning.

We should guard against two common mistakes when we use tax planning effectiveness indicators.

One is to take enterprise profit as an index of efficiency.

Although corporate profits and corporate net cash inflows are equal in a certain period of time, after all, they do not consider the time value of capital, and can not be compared with the tax planning method that can get the time value of capital (accelerated depreciation and deferred tax).

The other is to minimize the tax burden for tax planning.

The reduction of tax burden does not necessarily maximize the value of enterprises. If the growth of net cash inflows is greater than the growth of taxes, paying more taxes is also cost-effective.

Legality is the basis and premise of planning and effectiveness. Considering planning is the means to embody the real benefits under the premise of legality. The accuracy of expectation will directly affect the effect of tax planning.

Efficiency is the final destination of legality and planning, and planning without effectiveness is ineffective.

Only by implementing the trinity of the three party can tax planning be successful.

A small piece of jade